Japan is set to go after gasoline gougers as the war in the Middle East fans record fuel costs.
The government will step up its ability to intervene against fuel stations that overcharge consumers, with the conflict pushing up costs and adding to inflationary pressures. To ensure a recent gasoline subsidy is fully reflected in retail prices, the government will increase the frequency of phone surveys of service stations, according to a letter sent to Japan¡¯s Zensekiren, an association of oil-related businesses, from the Agency for Natural Resources and Energy.
If service stations don¡¯t provide an appropriate reason for high retail prices, the government will conduct on-site visits and ¡ª if required ¡ª issue notices to gasoline stands to sell at "fair prices,¡± the document said.
An official from Japan¡¯s natural resources agency confirmed that it sent the letter to the association. A spokesperson from Zensekiren said it told the government that retail prices should ultimately be determined by each business owner due to concerns over monopolies.
The U.S.-Israeli attack on Iran has upended global oil markets, sending the price of gasoline in Japan to an all-time high last month. The country, which relies heavily on Middle Eastern crude, has scrambled to shield consumers from the shock ¡ª particularly as households were already grappling with rising living costs.
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